Financial Settlement
What Does a Financial Settlement Cover?
A financial settlement can include:
- Property – Deciding who keeps or sells the family home and how proceeds are split.
- Savings & Investments – Dividing joint bank accounts, pensions, stocks, and other financial assets.
- Debts & Liabilities – Deciding how outstanding loans, mortgages, and other debts are managed.
- Spousal Maintenance – Payments from one spouse to another if one is financially dependent.
- Child Maintenance – Financial support for children, usually arranged through the Child Maintenance Service (CMS) unless agreed privately.
How Is a Financial Settlement Reached?
Couples can reach a financial settlement in several ways:
- Agreement Between Themselves – If both parties agree, they can draft a Consent Order to make it legally binding.
- Mediation – A neutral third party helps negotiate an agreement without going to court.
- Solicitor Negotiation – Lawyers negotiate on behalf of each spouse.
- Court Order – If an agreement isn’t reached, one party can apply to the court for a Financial Order, and a judge will decide.
Is a Financial Settlement Legally Binding?
- A verbal or written agreement between spouses is not legally binding unless approved by the court.
- To make it legally enforceable, couples must apply for a Consent Order, which a judge reviews and approves.
- Without a financial settlement, claims can still be made in the future, even after divorce.
What is the process for negotiating a financial settlement and what risks should be considered if it is done incorrectly?
The process for negotiating a financial settlement can be done in two ways. Firstly, if financial matters are agreed upon between both parties a finance consent order can then be drafted and filed with the court alongside the relevant paperwork.
On the other hand, if matters are not agreed upon between parties and where there is a financial dispute regarding assets and finances, it would then be recommended to go through the court process of obtaining a financial order. This process is generally quite lengthy and consists of financial hearings and full financial disclosure from both parties. Once a settlement is agreed a final order will then be granted.
Book your initial consultation with our Family Law Solicitors in Birmingham. Freephone 0330 333 8797, request a callback or email info@wildings-solicitors.co.uk for specialist advice.
